May, 2023 – Issue No. IV


The ₹2000 denomination banknote was introduced in November 2016. RBI has decided to withdraw this denomination because, other denominations are available in adequate quantities; the total value of these banknotes [Rs.2,000] in circulation has considerably declined, which is not commonly used for transactions and also as per “Clean Note Policy”. The banknotes in ₹2000 denomination will continue to be legal tender. Members of the public may deposit ₹2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch. Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions. In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of ₹2000 banknotes into banknotes of other denominations can be made upto a limit of ₹20,000/- at a time at any bank starting from May 23, 2023. To complete the exercise in a time-bound manner and to provide adequate time to the members of public, all banks shall provide deposit and/or exchange facility for ₹2000 banknotes until September 30, 2023. The facility for exchange of ₹2000 banknotes upto the limit of ₹20,000/- at a time shall also be provided at the 19 Regional Offices (ROs) of RBI having Issue Departments from May 23, 2023. The Reserve Bank of India has advised banks to stop issuing ₹2000 denomination banknotes with immediate effect. Members of the public are encouraged to utilize the time up to September 30, 2023 to deposit and/or exchange the ₹2000 banknotes. A document on Frequently Asked Questions (FAQs) in the matter has been hosted on the RBI website for information and convenience of the public.

The Indian Tax Advisors